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Course Outline
The Global Capital Markets
- Defining a 'financial marketplace'
- Historical evolution of today’s global financial markets
- The influence of financial media
- Structure of major capital markets:
- Exchanges, Clearing Houses, and Regulators
- The recent surge in global investment
- Types of 'Stock Exchanges'
- The role of Stock Exchanges in modern markets
- US, European, Middle Eastern, and Asian Stock Exchanges
Financial Markets Regulation:
- Capital Adequacy Requirements
- Basel I
- Basel II
- Basel III and its implications
- Sources for New Product Development
Asset Classes and Their Markets
- Current trading activities on Stock Exchanges
- Equities – Common and Preferred
- Bonds – Corporate and Government
- Bonds – Fixed, Floating, and Zero Coupon; The Yield Curve
- Money Market instruments
- The currency markets
- Investor motivations: Buying and Selling drivers
- Income vs. Capital Gain
- Interrelationships between various asset classes
- Interplay between Exchange-traded and Over-The-Counter markets
The Short-Term Money Market
- Certificates of deposit
- T-Bills
- Commercial paper
- Trade paper & Bankers' Acceptances (BAs)
- Market norms and practices
- Market participants
Types of Stock Exchange Investors
- Individual Investors
- Fund managers
- Hedge funds
- Stock Exchange participants
- Investment banks, Stockbrokers, Hedge Funds, and Prime Brokers
- Intra-market relationships – The buy and sell sides of the industry
The Role of the Stock Exchange
- Where are these products traded?
- The significance of the OTC market
- Historical development of Stock Exchanges
- Major Stock Exchanges in today’s markets
- US, European, and Asian Markets: Architectural differences
- Asset classes traded on Stock Exchanges worldwide
- The major Primary and Secondary markets
- New York, Euronext, London, Shanghai, Hong Kong
- Why 'listed' companies attract investors
- Utilizing Stock Exchanges to pool liquidity and raise capital
- Methods of Capital Raising
- 'Floating' a company – Various methods
Clearing & Settlement
- Settlement and settlement risk
- Different Settlement Conventions in major markets
- Equities, Bonds, and derivatives
- The process for Derivatives Clearing
- The Central Counterparty (CCP)
- CCP services provided to Stock Exchanges
- Margin requirements
- The securities trade settlement process
- Pre-settlement
- Settlement
- Potential issues – Unmatched trades, delayed settlement, bad delivery
- Stock Exchange Settlement Discipline
- The 'trade life cycle' – Connecting the process from trade to settlement
- The role of International Central Securities Depositories (ICSDs) and Central Securities Depositories (CSDs) – LCH.Clearnet, Euroclear, Crest, Clearstream International, the DTC
Custody
- The role of Custodians in Stock markets
- Settlement and safekeeping
- Income collection and Corporate Actions
- Cash management and funding transactions
- Additional services
- Accounting
- Stock Lending and collateral management
- Trustee services
- Valuation reports
Alternative Investments
- What are Alternative Investments?
- Structured products – Risks and returns
- Hedge funds – Risks and Control
- Venture Capital Valuation issues, Risk and Control
- Private Equity/Angel Finance
- Use of derivatives in Asset Management
- OTC vs ETD
- Types of Derivatives used in Asset Management
- Futures
- Options
- Risks and controls associated with derivatives, including documentation, valuation, and reporting
Management of Quoted Equity Investments
- Risks associated with acquiring securities
- Risks associated with managing securities
- Risks associated with corporate actions
- Pricing of quoted equity investments
- Major sources of risk
- General controls within equity investment
- Risks associated with international equity markets
Management of Quoted Fixed Income Investments
- Risks associated with acquiring and disposing of fixed income securities
- Use of ratings and associated risk issues
- Risks associated with pricing of fixed income securities
- Risk and controls within corporate fixed income processing
- Risks associated with Government Securities
- Sovereign risk ratings
- Valuation of government securities
- Risk and controls within sovereign bond processing
Market and Credit Risks of Investing in Global Markets
- Market risks
- VAR calculations
- Market risk modelling
- Credit Risks
- Measuring Credit risks
- Global Market Risks
- Money Market Risks
- OTC Risks
- Exchange risks
14 Hours
Testimonials (1)
The lecturer is very knowledgeable and can substantiate theories with his own personal experiences.